Full Breakdown
Nvidia Expands Record $235 B Share Buyback Amid AI Boom
By Drooid · · How we work
Core Event
Nvidia’s board approved an additional $150 billion of share repurchases, raising the total authorized buyback to $235 billion. The company says the program is the largest in its history and is slated for completion through fiscal 2028.
Background and Recent Activity
The new authorization follows a May vote that added $80 billion with no expiration date. In the first two quarters of fiscal 2027 Nvidia repurchased $39 billion of stock, nearly matching the total repurchases for fiscal 2026, and it bought back roughly $34 billion in fiscal 2025. Nvidia has pledged to return at least 50 % of free cash flow to shareholders via buybacks and dividends, and it raised its quarterly dividend to $0.25 per share. The firm also continues to fund AI-infrastructure customers, a practice that has prompted discussion of “circular financing” risks, though Nvidia argues its balance sheet remains strong enough to support both buybacks and ongoing AI leadership investments.
Official Statements & Responses
Nvidia CEO Jensen Huang stated, “We’re going to generate a lot of cash in the coming years, and every single year, as we generate more cash, we’d like to be able to return it back to shareholders.” FactSet projects roughly $440 billion of free cash flow over the next six quarters, a cash base that analysts say can sustain the expanded buyback while preserving capital for AI development.
Market Reaction and Commentary
Following the announcement, Nvidia’s shares rose about 3 %, lifting year-to-date gains to roughly 24 %. He noted that a lower-than-1 % dividend yield keeps Nvidia classified as a growth-oriented, not income-oriented, stock.
Verbatim Quote
- “We're going to generate a lot of cash in the coming years, and every single year, as we generate more cash, we'd like to be able to return it back to shareholders,” — Nvidia CEO Jensen Huang
